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Al-Madad Stone Crusher Margallah Hills, Taxila Pakistan

International Islamic University Islamabad

Page 1 of 17

“In the name of A ll ah, The most M er cif ul and The most Benefi cent  ” 

ACKNOWLEDGMENT

Praise is to Allah, the Merciful, and the Beneficent; as without His mercy it would have never been possible for us to complete this project. It is all because of His kindness that this Business Proposal is seeing the daylight. I would also like to thank Mr. Khurram Rizvi our course instructor, for his help in completing this Business Proposal.

E-Commerce Business Proposal INESS PROPOSAL E-BUSINESS

Submitted to:

Mr. Khurram Rizvi

Submitted By:

BBA-ITM (15)

Members:

Mr. Yar Muhammad Khan

553-FMS/BBAIT/F08

Mr. Malik Abdullah Niaz

566-FMS/BBAIT/F08

Mr. Waseem

545-FMS/BBAIT/F08

Page 2 of 17

TABLE OF CONTENTS SR.#

PARTICULARS

PAGES

1.0

EXECUTIVE SUMMARY

4

2.0

BUSINESS DESCRIPTION

5

2.1



Industry Analysis

5

2.2



Vision, Mission, Goals

6

2.3



Objectives

7

2.4



Value Preposition , Business Model

7

2.5



Revenue Model, Product

8

2.6 3.0

3.1

Production Sales COMPETITOR ANALYSIS 

9 10 10

4.0

Strength , Weakness, Opportunities, Threats COMPETITIVE ADVANTAGES

11

5.0

MARKET ANALYSIS

11



5.1



Target Markets

11

5.2



Physiographic Analysis

11

5.3



Demographic Analysis

11

5.4 6.0

Pricing Strategy, Promotional Plan, Distribution Plan OPERATIONS: 

12 13

6.1



Business location

13

6.2



Operating Facilities and equipment

13

6.3



Availability of employees

13

6.4



Production and operation procedures

13

6.5



Purchase of Raw materials

13

6.6



Inventory management procedures

14

6.7



Quality control procedures, Website Host

14

6.8



Website Development

14

6.9



Selecting Domain Name

15

7.0

FINANCIAL ANALYSIS

15

8.0

ORGANIZATION STRUCTURE

16

8.1



8.2



8.3 8.4

Form of Business , Liability, Decision Making:

16 16



Management Plan Human Resource Management:



Duties and Responsibilities:

17

16

Page 3 of 17

1.0

EXECUTIVE SUMMARY

Al-Madad is the stone crusher and supplier which is operating at Margalla Hills, Taxila, Pakistan since 1986.This business is govern by three partners, Muhammad Niaz Malik who is acting as head, Zulfiqar Raja who is acting as deputy head and Basharat Khan who is acting as finance and sale manager. The main three competitors are Rohi, Pathar Ghar and Ahata which are located locally  but they aren’t transformed to e- business. We don’t have such direct competitor in the e-business in Pakistan but do have indirect competitor such as alibaba which is outside Pakistan. So we will be the first company to be transformed into e-business in Pakistan, which will have access throughout country and around globe to access maximum customers and catch maximum customers. Our business models are B2B and B2C and the Revenue models are sale, advertisement, subscription, and affiliate and transaction fee revenue model. The distribution plan will be direct sale and whole sale to our customer either to individual customer or entire business and these both are our target margets.Our  business will follow the pricing strategy of two methods either demand price or competitive  price. The promotion plan which will promote our business can be newspaper, television and social commodities like Facebook, twitter, YouTube and blogs etc. Our company will build website completely outsources from the best vendor in Pakistan which will give an opportunity to the customers who can seek information about our products and their prices and will host that website through Comsats Internet Service Provider (ISP) who is giving 10% discount on all packages till December 31, 2011.Al-Madad is very much focusing on the quality of finished product and customer satisfaction so we take some measures in the form of quality control procedures and inventory management system which will fulfill those needs.

Page 4 of 17

2.0

Business Description

2.1

INDUSTRY ANALYSIS

Our industry is crush manufacturer and crush supplier which will operate in e-business. The economy of Pakistan is the 47th largest in the world in nominal terms and 27th largest in the world in terms of   purchasing power parity (PPP).  Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Growth poles of Pakistan's economy are situated along the River, diversified economies of Karachi and Punjab's urban centers coexist with lesser developed areas in other parts of the country. The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India.  However, IMF-approved government policies, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the  banking sector have helped the economy. GDP growth, spurred by gains in the industrial and service sectors, remained in the 6 – 8% range in 2004 – 06 due to economic reforms in the year 2000 by the Musharraf government. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally. Islamabad has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07, a necessary step toward reversing the  broad underdevelopment of its social sector. The fiscal deficit –  the result of chronically low tax collection and increased spending, including reconstruction costs from the devastating Kashmir earthquake in 2005 was manageable. Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In 2008, following the surge in global petrol prices inflation in Pakistan reached as high as 25.0%. The central bank is pursuing tighter monetary policy while trying to  preserve growth. Foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit  –   driven by a widening trade gap as import growth outstrips export expansion –  could draw down reserves and dampen GDP growth in the medium term. Manufacturing industry analysis suggests that the manufacturing industry has served as the  pivotal factor in the economic development of a country. Manufacturing industry analysis also indicates that the manufacturing industry provides employment too many thereby contributing to the gross domestic product and per capita income of the country. Approximately 75% of the engineers as well as the scientists get employed in the manufacturing industry as recorded by a manufacturing industry analysis. The Census bureau categorizes a particular manufactured  product depending on the primary goods produced by the manufacturing industry.

Page 5 of 17

2.2

VISION STATEMENT:

The vision of the company is to expand its business not only to the parameter of traditional market of Pakistan but also to transform it in to virtual business across the globe to catch maximum market share and to build strong and reliable relationship between businesses and individual customers. MISSION STATEMENT:

Al-Madad Stone Crusher has a mission to provide high quality finishing products and service to customers in time which result in greater satisfaction and to transform business into E-Business to catch maximum market share around the globe. Our company will reduce the unemployment and will become an important cause to increase in Gross Domestic Product (GDP) of Pakistan,  by exploding, producing and delivering the best natural resource “Lime stone” to all over Pakistan and later to the world. GOALS

1. 2. 3. 4. 5. 6. 7. 8.

Transforming business from traditional marketing towards E-Business marketing. High quality finishing product. Provide opportunities. Easy Access to place an order. Delivery of product in time. Customer satisfaction. Customer loyalty. Maximum market Share.

Plan to achieve the above goals

The first priority of our business is to gain the customer satisfaction by providing a sophisticated website through which an individual customer or an entire business will place an order. Other they will be satisfied and will maintain long term relationship with a company by receiving a high quality finishing product in time. Finally market share can be maximum by gathering maximum loyal customers to the business to enhance the market not to the limited area but can  be access throughout Pakistan and around the globe. The aim of our company is to reduce the rate of unemployment by hiring skillful labor on wages with respect to the enhancement of business to all over Pakistan which will result in the increase of Gross Domestic Product (GDP) of the country.

Page 6 of 17

8.0

ORGANIZATION STRUCTURE

8.1

Form of Business

Our e-business will be established on base of Partnership act, 1932. In which 5 partners are contributing towards capital of business. These members include: 1. Muhammad Niaz Malik. 2. Basharat Khan. 3. Zulfiqar Raja. 4. Shahista Khan. 5. Tahir Khan.

8.1

Liability:

Liability of all the members is unlimited so that to maximize the interest of all members in venture. All the members have the basic right to point out the steps taken by other in meeting and others have to answer in reasonable manner. 8.1

Decision Making:

Every member is authorized to take decision in his under sudden conditions. They follow the same rules of decision in which whole business will be governed by majority members meetings. 8.2 MANAGEMENT PLAN: WE  will run our business by the current team, composed of 5 members. Each of team members has developed skills in specific area that will help the firm to reach its goals. In future we may hire more workforce as per requirement of business. 8.3

Human Resource Management:

SR.# STAFF TITLE NO.OF PERSONS Shawl 2 01 Shawl Helper 2 02 Dumper driver 4 03 Helper 2 04 PRODUCTION STAFF Crusher in charge 1 05 Assistant crusher in charge 1 06 GENERAL ADMINISTRATION/SELLING STAFF Manager 1 07 Office Assistance 1 08 Total 14

MONTHLY SALARY 15,000 10,000 15,000 8,000

ANNUAL SALARY 1,80,000 1,20,000 1,80,000 96,000

20,000 15,000

2,40,000 1,80,000

18,000 10,000 1,11,000

2,16,000 1,20,000 13,32 ,000

Page 16 of 17

8.4

Duties and Responsibilities:

Duties and responsibilities of each member are assigned according to the interest and qualification of each of the member. Muhammad Niaz Malik: Head

He is the supervisor or the head of our business; he has to manage the things of fallowing matters: 1. Financial Status 4. Expenses

2. Labor wages 3. Liabilities of the other contractors 5. Utilities Bills and other kind of small activities.

Zulfiqar Raja: Deputy Head

He is the second supervisor of our business, who leads the business if the head of business is not available so he has the same responsibility which is as fallow: 1. Financial Status 4. Expenses

2. Labor wages 3. Liabilities of the other contractors 5. Utilities Bills and other kind of small activities.

Basharat Khan: Finance & Sales Manager

He has a dual role in our business, he take care of fallowing things which are as: 

Financing.



Taking of order.



Delivering of order.



Keep the record updated.



Preparing of balance sheet.



Preparing of income statement.

Other Partnership : The partnership between the three members is done for having a dumper for their business which takes their products to their destination in time. On the other hand there is  partnership of Shawl which is used for dinging the mountain for bringing out the best lime stone from it.

Page 17 of 17

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